Celebrate Arnold Harberger’s Incredible Century of Life! 🎉🎂

A Centenarian Economist: Celebrating the Legacy of Arnold Harberger

Today marks the milestone of Arnold Harberger, the renowned University of Chicago economist, turning 100 years old. Despite the century behind him, his passion and intellect still shine brightly, even as he continues to impart wisdom in the classroom.

Harberger’s illustrious career and accomplishments are well-documented in various sources, including a comprehensive Wikipedia article. Rather than reiterating his accolades, I’d like to share three anecdotes that shed light on my personal interactions and observations of the man, known affectionately as Al.

1. A Legend in Person
   Meeting Al for the first time at a social gathering in the late 1970s, I was awe-struck by his analytical prowess and ability to draw significant conclusions using fundamental price theory. However, what stood out even more was his humility and approachability. Despite his revered status, he exuded warmth and kindness, making me feel like I was in the presence of an ordinary, friendly individual.

2. A Helping Hand
   During my time at the Cato Institute in 1979, I sought Al’s assistance in gathering data for an article written by a mutual friend. His willingness to lend his expertise and support spoke volumes about his generosity and genuine interest in nurturing the intellectual pursuits of others.

3. Legacy of Influence
   At a Mont Pelerin Society meeting in January 2020, I had the privilege of witnessing Al’s insightful commentary on Chile’s economic landscape. His instrumental role in shaping the country’s free-market direction, dating back to the 1970s, highlighted his profound impact on economic policy. Despite never receiving a Nobel Prize in economics (a fact perhaps tied to his association with the Chicago Boys and Chile’s complex political history), his influence on generations of economists and policymakers is undeniable, reflecting a deep bond of respect and admiration.

The Monopoly Man
Now, you might be wondering why I affectionately refer to him as “Triangle Man.” This nickname originates from Harberger’s iconic 1954 article, “Monopoly and Resource Allocation.” In this groundbreaking piece, he quantified the deadweight loss caused by monopoly, offering a fresh perspective that distinguished him from his peers. By estimating the deadweight loss to be minimal, around 0.1% of GNP for U.S. manufacturing, Harberger challenged existing notions and paved the way for new economic insights. His pioneering work shaped the way economists perceive market dynamics, symbolized by the triangular graphic illustrating the concept of deadweight loss.

As I reflect on our shared moments and the profound impact Al has had on the economic landscape, it is clear that his legacy will endure for generations to come. His contributions, both scholarly and personal, serve as a testament to the power of intellectual curiosity and compassion in shaping the world around us.

In honoring Arnold Harberger on this momentous occasion, we celebrate a man whose legacy transcends his age, embodying the essence of wisdom, humility, and enduring intellectual curiosity. Let his story inspire us to venture boldly into uncharted territory, guided by the enduring principles of scholarship and compassion.